China-Singapore Jingwei, September 23, according to the central bank’s website, in order to maintain stable liquidity at the end of the quarter, on September 23, 2021, the central bank launched a 7-day and 14-day reverse repurchase operation in the form of interest rate bidding for a total of 120 billion yuan. The winning bid rates were 2.20% and 2.35% respectively.

Wind data shows that today's 10 billion yuan reverse repurchase expires, so a single day net investment of 110 billion yuan.

Screenshot source: Central Bank website

　　It is worth mentioning that the central bank has carried out 100 billion-level reverse repurchase operations for the fourth consecutive working day. Previously, the central bank carried out 100 billion yuan and 100 billion yuan respectively on September 17, September 18, and September 22. , 120 billion yuan reverse repurchase operation.

　　Previously, Sun Guofeng, Director of the Monetary Policy Department of the Central Bank, stated that the supply and demand of liquidity will maintain a basic balance in the next few months, and there will be no large gaps and large fluctuations. Factors such as fiscal revenue and expenditure, government bond issuance payments, etc. will have an impact on liquidity. The central bank has sufficient tools to smooth out the periodic disturbances in the country; it is not advisable for the market to simply judge the tightness of liquidity based on the liquidity of the banking system or the excess reserve ratio. The most important indicator for judging liquidity is to observe market interest rates.

　　According to a report from the China Securities Journal, analysts expect that towards the end of the quarter, the central bank will continue to dynamically fine-tune the liquidity investment, accurately meet institutional needs, guide and stabilize market expectations, and help funds to stabilize across the quarter.

The prudent monetary policy orientation has not changed, but the central bank's monetary policy operations are more scientific, transparent, flexible and precise.

(Zhongxin Jingwei APP)